Landlord and contents insurance

Loss of rent makes up around two-thirds of landlord insurance claims at EBM RentCover.

We offer cover:

• when a tenant stops making payments due to hardship
• after the death of a tenant
• when a tenant leaves the property unexpectedly
• when a tenant refuses to leave a property and a court order is required for possession of the property
• during repairs.

When a tenant defaults or absconds, breaks lease or experiences hardship, a specialised landlord insurance policy proves a wise investment. At EBM RentCover, we help landlords avoid the financial and emotional stress that comes with being out of pocket, by offering up to six or 52 weeks cover for loss of rent (limited to a maximum of $1,500 per week).

• Loss of rent (rent default or when a tenant leaves the property unexpectedly) is covered up to six weeks.
• Loss of rent (after the death of a tenant, during repairs and when a property is unable to be accessed) is covered up to 52 weeks.

While landlord insurance is a great safety net, the old saying goes, ‘prevention is better than cure’. So, here you will find eight tips to help minimise the risk of rental arrears.

Protection for lost rent when a tenant disregards an eviction notice and refuses to leave the property after is has expired. 

If a tenant has been told to move out and isn’t budging, then it’s very unlikely they are paying rent. In these circumstances, no money is coming in from those living at the property and as a landlord or property manager, you can’t get another tenant in either.

When a tenant is refusing to leave, and the property is protected by landlord insurance, claims can often be submitted for loss of rent due to denial of access. Clients can claim on this section of the policy after a notice to vacate has expired (this is the case at EBM RentCover, however some landlord insurance providers may insist the tenant has to have been served with an order by a court or tribunal for eviction or possession before you can claim).

RentCover Ultra provides up to 52 weeks’ protection for loss of rent (limited to a maximum of $1,500 per week) when a tenant refuses to leave the property and a court order is required for possession. A claim can be submitted for this period after the expiry of a termination notice. For more info, read this.

NOTE: Not all landlord insurance policies have this as a standard inclusion, BUT it is standard in  RentCover Ultra and Platinum policies.

Protection for lost rent after the death of a tenant, including murder and suicide.

In an ideal world, no agent or landlord would ever be confronted with the death of a tenant at a rental. Sadly, the reality is that many will have to deal with just that eventuality. Whether a lone tenant simply passes peacefully in their sleep, or the death is far more traumatic, it is best to be prepared. 

EBM RentCover offers 52 weeks protection for lost rent (limited to a maximum of $1,500 per week) after the death of a tenant, including murder and suicide.

NOTE: Most landlord insurance policies will respond to claims relating to tenant death, but there are varying levels of cover, inclusions and exclusions. Unlike EBM RentCover, some insurers may not cover damage, while others may not cover rental losses. 

To find out more about what to do if a tenant passes away in a rental, read this.

Covers tenant damage to fixed contents and building, including intentional, malicious and accidental damage.

Some insures only cover one type and others (like us) cover three types of tenant damage to fixed contents and building:

Accidental – the result of sudden, unexpected or unforeseen events (such as a child scribbling on the walls with a permanent marker).  

Malicious – caused on purpose with intent to do harm, motivated by vindictiveness or spite with the aim of damaging the property (such as punching a hole through a door).

Intentional – the result of an act carried out without permission but without malice, and with the full knowledge the action will alter the current state of the property (putting picture hooks in walls or painting a wall a different colour).

NOTE: We often get claims for wear and tear. However, wear and tear is something that just happens over time with normal use of the property - something that has not been caused intentionally, or by misuse or abuse. Because wear and tear is expected and considered normal maintenance, it is not covered by landlord insurance.

Excess: $400 per claim for malicious tenant damage. Or, $400 per event for accidental and intentional tenant damage (capped at two). This means, if a tenant's kid accidentally draws on the walls and a tenant also paints a room a different colour, they would be treated as two separate events and two excesses would apply.

Covers damage to fixed contents and building caused by a tenant's domestic pet kept at the property, including those not named on the lease.

Many landlords and property managers are hesitant about allowing pets in investment properties because of the potential damage. However, with the right cover in place, landlords and property managers can claim should something go wrong.

EBM RentCover offers cover for damage to fixed contents and building caused by a tenant's domestic pet kept at the property, including those not named on the lease.

Case in point: pet damage - $12,494.70 . An EBM RentCover policy once paid out close to $12,500 to one landlord, after it was discovered a pet dog had urinated all over the investment property. The funds were used to restore the property including disposing of carpets, painting and balcony rendering. 

For more info about pets in properties, read this.

Excess: $400 per event (capped at two). This means, if your furry friend chews through a door in one room and then tears up the carpet in another, they would be treated as two separate events and two excesses would apply. 

Covers damage to contents and building caused by meth labs and hydroponic set-ups.

Within the privacy of their rented four walls, some tenants are secretly growing and manufacturing illicit drugs including cannabis, methamphetamine, ecstasy and GHB. Thankfully EBM RentCover offers cover for damage to contents and building caused by meth labs and hydroponic set-ups in investment properties.

Case in point: drug lab clean-up – $65,000 (+ $9,000 for loss of rent) . After the property manager was notified police had raided the house and found a hydroponic set-up, an inspection revealed holes cut in the walls and ceilings throughout the home. There was vent tubing, additional wiring and chains hanging from the ceilings – and hundreds of empty pots. The main power supply had also been altered and the home had been flooded, destroying the flooring. The policyholder received a payout of $65,000 plus an additional $9,000 for loss of rent (note: EBM RentCover offers up to 52 weeks cover for loss of rent in these situations).   

EBM RentCover is one of few specialist landlord insurers providing protection for drug lab clean-up. Read this to find out more about what to do if the rental property you own or manage is transformed into a drug lab.

Covers theft, impacting both building and fixed contents.

Theft extends to such things like fittings and awnings (we once paid out $990 to a client after their tenant pinched the ceiling fans), however it does not cover cash.

Plus, there are a few safeguards landlords and property managers need to put in place to make sure the cover isn’t void, including making sure all doors have working locks. You can check out our PDS here to find out more. 

NOTE: This cover does not extend to the tenant’s belongings. If your tenant wants to protect their contents, they need their own insurance policy. It also does not extend to non-fixed items supplied by the landlord (e.g. furniture and whiteware), however the landlord can request this type of cover at an additional cost.

Excess: $400 if theft occurs by the tenant. Or $500 if theft occurs by someone not named on the lease.

Protection when Mother Nature causes damage to contents.  

The right insurance policy means owners can protect their investment, at least financially, against a range of extreme weather events. RentCover Ultra offers cover for damage to contents caused by Mother Nature, including: bushfire, storm, flood, earthquake, tsunami and cyclone.

When planning insurance, check if your policy includes the events that are most likely to happen at your property.

NOTE: Some environmental conditions are uninsurable, for example when the damage or loss does not result from a single ‘insured event’, such as in cases of coastal erosion where the problem develops over time.

Covers damage to contents by fire or explosion, including arson by the tenant.

Fire damage is an important feature in most landlord insurance policies and can protect an investment if: an electrical appliance fails, a candle ignites the room, a bushfire consumes a neighbourhood or a tenant sets fire to the property (arson).

We know it can be tough to navigate the claims process when Mother Nature strikes, so here you will find tips for submitting successful claims when an investment property is impacted by a bushfire.

Sometimes water damage occurs out of nowhere and can cause significant damage and even more frustration. If you have the right insurance in place, you don’t need to drown your sorrows when a property is inundated with water. 

EBM RentCover can cover damage to contents by water including from bursting pipes, overflowing basins or baths (must be fixed in place), roofs leaking, sewerage discharging, and water suddenly escaping from a waterbed or aquarium.

NOTE: Most insurers do not cover water damage which has occurred gradually over time (e.g. mould, or corrosion). This is because it is something that could have been prevented and most landlord insurance policies state that all must be done to prevent future damage and loss.

Protects against damage created by electrical currents or wiring.

Fusion is the burning out of an electric motor or its wiring which is caused by an electric current. EBM RentCover offers protection for this sort of damage to select items and will pay the cost of rewinding the motor or replacing it (if it is less than 15-years-old).

Protection when you are found legally liable for an incident, including tenant injury.

If a landlord fails to provide a safe environment for tenants, they can be sued for compensation by the person who is injured. And those costs and compensation payouts can stretch from tens of thousands to hundreds of thousands or even millions of dollars once medical costs, loss of income and pain and suffering are factored in.

That is why EBM RentCover landlord insurance offers protection when you are found legally liable for an incident, including tenant injury.

DID YOU KNOW??... To date, the highest personal injury claim in Australia for one person was an eye-watering $19 million – and half of that was legal costs! That’s why the legal liability limits set out in landlord insurance policies are in the millions.

Read this for more information.

Covers court and tribunal fees for loss of rent claims.

We hope your tenancy is a breeze, however, when it does go wrong there can be lengthy and costly legal disputes.

When a tenant is in arrears or does something wrong at the property, you may need to go to court or tribunal to sort out disagreements. If this happens in relation to loss of rent (we only offer this protection in relation to loss of rent), you may find it useful to have landlord insurance cover that extends to legal expenses.

Covers costs of an audit in connection to the ownership of the insured property.

EBM RentCover will cover costs of an audit in connection to the ownership of the insured property. This means, during any one period of insurance, if there is an investigation into a return lodged with the Commissioner of Taxation in relation to an investment property insured with us, we will cover up to $1,000 per audit (if more than one audit occurs, we will pay out a maximum of $2,000 combined). 

Our online claims portal allows you to easily tell us what happened, provide necessary quotes and invoices, upload documentation and submit a claim. You can find our online claims portal here.

Tips for submitting a claim:

• As soon as something goes wrong, you should contact our Expert Care team. The sooner we know, the sooner we can act.
• To submit a successful insurance claim you need to be able to tell us what has happened, where and when. So, grab a notebook and camera and take lots of photos of the damage.
• If it is safe to do so, do what you can to stop the damage getting worse. For storm damage, this could include boarding windows or laying a tarp on the roof.
• It is important to keep hold of receipts for any work you do or materials you purchase as you may be able to claim those expenses.

For more tips and tricks, click here. Or, if your claim is in relation to Mother Nature, check out this article which guides you through an insurance claim after a natural disaster.

Of course you can! It is easy. Save time and pay online here.

TIP: Make sure you have your invoice handy so you can easily fill in the form. You will also need your credit or debit card details to process the payment.

You can never really be certain your investment or belongings are secure. You can be certain EBM RentCover will be there in times of need. Contact 1800 661 662 or email [email protected] if you want to chat about cover, claims or your insurance needs.

While insurance is important, EBM RentCover adds true value with its service and support. Our specialised team works with property professionals and landlords to educate them about the unknown and guide them through the maze of insurance jargon.

Here is a list of reasons to partner with EBM RentCover:

• We aim to confirm the submission of a claim and start working on it within 24 hours
• We have a reputation for paying out claims
• Most claims are managed in-house, allowing staff to the manage the time taken to process and pay claims
• Our Expert Care team is equipped to help – in fact, the team takes around 35,000 calls during an average year
• We are quick and aim to settle most claims within five working days, assuming we have all the information we need from you.
• Claims are usually assigned a dedicated claims specialist to work on it from start to finish (so you don’t bounce from one staff member to another)
• We make it easy for you by having an online portal where clients can simply submit, review and process claims online